DISQUS

Editor · 1 year ago

It amazes me how many people don't realize that a budget is the 1st thing you must do in order to improve your personal finance.

Sure, it can be painful. But there are all types of budgets and plans you can use. So go online and find one that's right for. you.

Great post!

Tom · 1 year ago

I agree with Flexo that once you've got a handle on your monthly expenses (track them daily for a month or two) and are paying yourself first by saving a defined percentage of your income before expenditures, a detailed budget is not worth the time it takes to manage it. I simply give myself an allowance of $35 a day for all my variable costs (e.g. food, entertainment, or clothing). When it's gone, I'm done for the day. Any surplus is credited to the following day, which evens out the bumps.

Chief Family Officer · 1 year ago

I think you make some good points, Flexo. Our budget is pretty flexible, in that I'm not constantly checking to see that we didn't go "over budget." Rather, our budget helps me figure out how much we can afford to put into savings and put toward debt repayment each month, and how much of each month's income is spoken for by fixed bills. With those lump sums out of the way, what's left can be spent however we want, allowing us to live comfortably but not extravagantly, while still making big strides toward our financial goals.